India’s agricultural sector has undergone a significant transformation over the past decade, driven by higher public investment, record crop production, expanded farmer support programmes, greater access to institutional credit and the growing adoption of technology. The changes have coincided with efforts to improve productivity, strengthen rural incomes, expand irrigation coverage and diversify sources of farm income.
How important is agriculture to the economy?
Agriculture and allied sectors continue to play a critical role in the Indian economy, contributing nearly 18 per cent of the country’s Gross Value Added (GVA). The sector’s GVA has more than doubled from ₹20.9 lakh crore in 2014-15 to ₹48.7 lakh crore in 2023-24.
At the same time, public spending on agriculture has increased substantially. The budget allocation for the Department of Agriculture and Farmers Welfare has risen from ₹27,663 crore in 2013-14 to ₹1.40 lakh crore in 2026-27.
What do production figures reveal?
India’s foodgrain production has reached record levels over the past decade. Total foodgrain output increased from 265.05 million tonnes in 2013-14 to 357.73 million tonnes in 2024-25.
Production has expanded across major crops, including rice, wheat, maize and oilseeds, reflecting a combination of improved inputs, irrigation expansion and better access to farm support mechanisms.
Which programmes have shaped the sector?
A number of flagship initiatives have become central to India’s agricultural framework.
These include the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), which provides annual income support of ₹6,000 to eligible farmers; the Pradhan Mantri Fasal Bima Yojana (PMFBY) for crop insurance; and the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), which focuses on expanding irrigation coverage.
Other major initiatives include the Agriculture Infrastructure Fund, the e-NAM digital trading platform, the Soil Health Card scheme, the Kisan Credit Card programme and the National Mission on Edible Oils.
How has support for farmers expanded?
PM-KISAN has disbursed more than ₹4.28 lakh crore to over 9.44 crore farmer families since its launch.
Crop insurance coverage under PMFBY has also expanded, with claims worth ₹1.96 lakh crore paid to farmers till December 2025.
Institutional credit to agriculture has grown sharply, with ground-level credit flow rising from ₹7.3 lakh crore in 2013-14 to ₹28.67 lakh crore in 2024-25.
What has changed in MSP procurement?
Minimum Support Price (MSP) operations and procurement systems have expanded considerably over the years.
Total procurement of wheat, paddy, pulses, oilseeds and cotton increased from 698.7 million tonnes during 2004-14 to 1,229.2 million tonnes during 2014-26.
The value of procurement at MSP reached ₹26.32 lakh crore during the latter period, around 3.5 times higher than during the previous decade.
How is technology reshaping agriculture?
Technology and digitisation are becoming increasingly integrated into agricultural administration and farm operations.
Under the Digital Agriculture Mission, more than 7.63 crore farmer IDs have been created and around 23.5 crore crop plots digitised.
New initiatives such as Namo Drone Didi, Kisan e-Mitra and the National Pest Surveillance System are also being used to improve farm services, monitoring and productivity.
Why are allied sectors gaining prominence?
Livestock, dairy and fisheries are emerging as increasingly important contributors to rural incomes and agricultural growth.
India remains the world’s largest milk producer, with milk production rising from 146.31 million tonnes in 2014-15 to 247.87 million tonnes in 2024-25.
Fish production has nearly doubled during the same period, while poultry production, honey production and ethanol manufacturing have also recorded significant growth.
The past decade has seen Indian agriculture evolve beyond a narrow focus on crop production towards a broader ecosystem that includes technology adoption, infrastructure creation, value addition, food processing, exports and allied sectors.
While challenges such as climate change, fragmented landholdings, water stress and market volatility continue to affect the sector, rising investment, expanding procurement networks, digital initiatives and the growth of dairy, livestock and fisheries are reshaping the country’s agricultural landscape.
